Investments 

Jupiter launches multi-asset income fund for Talib Sheikh

Jupiter launches multi-asset income fund for Talib Sheikh

Jupiter will launch a global multi-asset income fund for Talib Sheikh, who was poached from JP Morgan in June.

The Jupiter Flexible Income fund will invest on a global basis across multiple asset classes with the aim of achieving a yield in the 4-6 per cent range.

Mr Sheikh worked on a range of multi-asset income funds at JP Morgan and will invest in both traditional and non-traditional asset classes through his new fund.

He said there was an opportunity for a fund of this kind as a small number of existing products had a very large market share.

Mr Sheikh said: "While interest rates are starting to rise across Europe, the real yield accounting for inflation is actually falling. Investors' purchasing power is being eroded faster than at any time since the great financial crisis.

"The need for progressive income generation is a theme that is only growing in importance as life expectancies continue to increase in the developed world. Additionally, when looking at the global multi-asset income space, the 10 biggest funds today make up 65 per cent of assets in the segment with combined assets under management compared with 53 per cent  in 2009.

"There is a clear need for alternative options for investors and I believe that the flexibility provided by Jupiter's unique investment culture should prove an ideal environment for a dynamic, nimble portfolio like this to flourish."

The market for products that invest in alternative income assets have expanded in recent years, according to Niall O’Connor, who runs the Brooks MacDonald Defensive Capital fund.

He said a traditional argument against such investments is that when bond yields rise, the attractiveness of alternative income assets diminishes, but he said many such assets, at present, are priced in such a way as they can resist higher bond yields.

Patrick Connolly, a chartered financial planner at advice firm Chase De Vere, said: "Many investors have an ongoing need for income and this funds offers an attractive yield, an experienced management team and the resources of Jupiter’s regional investment teams.

"It could therefore be a good option for investors who want a buy-and-hold fund solution or who don’t benefit from bespoke independent financial advice or investment management services."

Depending on the class, the fund will have an ongoing charges figure of between 0.61 per cent and 1.47 per cent.

david.thorpe@ft.com

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